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PDD Today

$85.69 0.00 (0.00%)

As of 08/28/2026 04:00 PM Eastern

$71.94▼

$139.419.44

$117.17

On paper, PDD Holdings Inc. NASDAQ: PDD gave investors plenty to cheer in its Aug. 24 earnings report, comfortably beating expectations on earnings. Shares of the Chinese e-commerce giant duly popped at the open, yet by the closing bell, that early enthusiasm had evaporated and the stock slipped into the red, a telling sign that all isn't quite as rosy as the headline beat suggested. A modest rebound in Aug. 25 trading did little to dispel the doubts.

That muted response speaks volumes about the questions still hanging over the owner of budget shopping apps Pinduoduo and Temu. The shares remain down almost 25% for the year, and the failure to hold on to that post-earnings pop puts a nascent recovery, one that has seen the stock climb around 20% since late June, at risk of stalling.

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So why did a profit beat fail to win investors over? The answer lies not in the numbers the company beat, but in the ones it missed, and in the risks that refuse to go away.

A Mixed Report Beneath the SurfaceFor starters, the results were far more mixed than the headline profit beat implies. While earnings came in ahead of forecasts, revenue fell short of expectations, growing a respectable but underwhelming 8% year on year. For a company long prized as a growth machine, a top-line miss is exactly the kind of thing to give investors pause.

More troubling was the direction of net income. Despite the beat, the company's bottom line declined markedly from a year earlier, with net income falling by double digits. In other words, PDD is making less money than it was 12 months ago, even as its sales grow, a classic warning sign of a business under mounting cost pressure.

That combination, slowing revenue growth paired with shrinking profits, gets to the heart of why the market hesitated: the company is continuing to spend heavily in pursuit of longer-term growth.

The Squeeze on ProfitabilityAt the core of the bear case is exactly this erosion of profitability, as PDD plows money back into its platforms. The company is investing heavily in merchant subsidies and AI-powered shopping tools, and while that spending may support growth in the long run, it's clearly weighing on margins now.

The worry is that the pressure only intensifies from here: should competition force PDD to keep spending to defend its position, profits could stay under strain for some time. For a stock whose appeal has long rested on turning growth into hefty profits, any sign that the formula is breaking down is bound to unsettle the market.

Temu's Regulatory CloudBeyond the margin worries lies a thornier challenge: mounting regulatory scrutiny facing Temu, the group's fast-growing international arm. Management acknowledged the difficulty head-on, noting that the global trade and regulatory landscape has continued to shift, creating significant challenges even as it opens fresh opportunities.

That careful language reflects a real overhang. Temu's meteoric rise was built in part on shipping ultra-cheap goods across borders, a model now squarely in regulators' sights. Changes to the rules on low-value imports, along with tighter customs enforcement and new tariffs, threaten to raise costs and complicate the very growth story that made Temu so compelling.

The Battle on Home TurfIf the international picture is clouded, the domestic one is no less fierce. Back in China, competition among the big e-commerce players has rarely been more intense, and the result has been a costly spending war that has squeezed margins across the sector.

There is some comfort for PDD here, since compared with certain rivals, many of whose profits have taken an even heavier battering, the company has proven relatively resilient so far. But resilience is not immunity. As long as the price war rages, PDD may have to keep spending heavily to hold its ground, adding more pressure to the margins that investors are already fretting about.

Cheap, But Not Yet ConvincingPDD Stock Forecast Today12-Month Stock Price Forecast:
$117.17
36.73% Upside

Hold
Based on 15 Analyst Ratings

Current Price$85.69High Forecast$170.00Average Forecast$117.17Low Forecast$80.00PDD Stock Forecast Details

Weighing it all up, the market's tepid reaction makes sense. A profit beat is all well and good, but set against a revenue miss, falling profits, and a thicket of regulatory and competitive risks, it was never likely to spark a lasting rally on its own. The muted response looks less like an overreaction than a sober assessment of a decidedly mixed picture.

That caution is shared more widely. Following the results, Deutsche Bank reiterated its Hold rating, a stance that chimes with the broader MarketBeat consensus rating of Hold. The message from both is one of watchful patience rather than conviction in either direction.

For now, PDD finds itself in a familiar bind—cheap enough to tempt bargain hunters, yet saddled with enough uncertainty to keep the doubters at bay. Whether the recovery regains its footing will depend less on any single earnings beat than on whether the company can prove its profits, and not just its sales, are built to last.

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PDD Holdings Inc. (NASDAQ:PDD) warns that Temu is facing fresh margin pressure from upcoming European Union tariffs, threatening to hike costs and slow shipping times just months after U.S. trade policy shifts disrupted its cross-border model.

Co-CEO Lei Chen said the company is now adapting its operations to a rapidly changing global regulatory environment to preserve Temu’s long-term growth. The comments, made on PDD’s second-quarter earnings call, come as Temu faces mounting trade barriers in two of its largest overseas markets.

Europe Becomes Temu’s Next Trade ChallengeResponding to a question about the EU’s new customs duties on low-value imports, Chen acknowledged that the changes will pressure Temu’s cross-border business.

“On the changes to the EU customs duties that you mentioned, our team is actively assessing and adapting to them,” Chen said.

He added that, “Drawing on the experience that we have gained over the years, we have adjusted our supply chain and we are optimizing our fulfillment processes.”

Even so, management expects the policy changes to create meaningful near-term disruption.

“In the short term, cross-border orders in the affected markets will face lower fulfillment efficiency and higher costs, which will have a considerable impact on those parts of our business,” Chen said.

The comments mark one of PDD’s clearest acknowledgments that Europe is becoming the next major regulatory hurdle for Temu after changes to U.S. trade rules forced the company to rethink parts of its cross-border shipping model.

Temu Is Changing How It OperatesRather than signaling a retreat from international markets, PDD said the latest trade headwinds are accelerating changes already underway.

Chen said the company will “continue to onboard and support more high-quality local merchants to broaden the supply of local products.”

PDD is also accelerating the build-out of local warehousing and fulfillment infrastructure, Chen added.

The goal is to reduce reliance on direct cross-border shipments while building stronger local operations that can better withstand future policy changes.

“Through these investments, we hope to integrate more deeply into every market we serve, strengthen the foundation and resilience of our supply chain, and better navigate changes and volatility in the environment,” Chen said.

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Compliance Is Becoming A Competitive PriorityManagement also made clear that adapting to global regulation involves more than logistics.

Chen said PDD will continue investing in “compliance capabilities and platform governance” alongside supply-chain improvements.

The company has also “developed systematic IP protection capabilities,” which Chen said has been reinforced by “our recent favorable ruling in the IP litigation involving an industry peer.”

According to management, those investments are intended to strengthen trust with consumers, merchants and regulators as Temu expands internationally.

A More Challenging Global Growth StoryIn addition to the fickle nature of U.S. trade policy, PDD must also contend with Europe’s introducing another layer of costs and operational complexity that could pressure the economics of cross-border e-commerce.

Still, management emphasized that the long-term strategy remains unchanged.

“We are confident in our execution capabilities and organizational resilience,” Chen said. “Short-term volatility will not change the long-term direction of our global business.”

PDD will continue advancing its investments across “supply chain, fulfillment, compliance, and consumer service,” with the goal of providing consumers around the world “with a shopping platform that remains stable over the long term and offers compelling prices and reliable quality—a platform that they can count on, trust, and enjoy using.”

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Photo via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

DUBLIN and SHANGHAI, Aug. 24, 2026 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Total revenues in the quarter were RMB112.4 billion (US$1 16.6 billion), an increase of 8% from RMB104.0 billion in the same quarter of 2025.Operating profit in the quarter was RMB27.8 billion (US$4.1 billion), an increase of 8% from RMB25.8 billion in the same quarter of 2025. Non-GAAP2 operating profit in the quarter was RMB29.1 billion (US$4.3 billion), an increase of 5% from RMB27.7 billion in the same quarter of 2025.Net income attributable to ordinary shareholders in the quarter was RMB27.2 billion (US$4.0 billion), a decrease of 12% from RMB30.8 billion in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB28.5 billion (US$4.2 billion), a decrease of 13% from RMB32.7 billion in the same quarter of 2025.
“Since the start of the year, global trade and regulatory landscapes have continued to evolve, creating significant challenges while also presenting new opportunities,” said Mr. Lei Chen, Co-Chairman and Co-Chief Executive Officer of PDD Holdings. “We feel a strong sense of responsibility that comes with our unique position in global trade and will work diligently to build a trustworthy platform that consumers can rely on over the long run.”

“During the first half of the year, we continued to strengthen ecosystem governance within our daily operations, rolling out targeted trust and safety initiatives across categories,” said Mr. Jiazhen Zhao, Co-Chairman and Co-Chief Executive Officer of PDD Holdings. “We view compliance as a fundamental priority and are fully committed to safeguarding consumer rights and building lasting trust.”

“We stepped up our ecosystem investments in the second quarter,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “At this stage, our priority is helping merchants thrive and strengthening the broader industry ecosystem. We will continue to focus on these fundamentals to drive the platform’s sustainable development over the long term.”

_______________________________
1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026 as set forth in the H.10 Statistical Release of the Federal Reserve Board.
2 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.

Second Quarter 2026 Unaudited Financial Results

Total revenues were RMB112.4 billion (US$16.6 billion), an increase of 8% from RMB104.0 billion in the same quarter of 2025. The increase was primarily due to the increase in revenues from transaction services.

Revenues from online marketing services and others were RMB57.6 billion (US$8.5 billion), compared with RMB55.7 billion in the same quarter of 2025.Revenues from transaction services were RMB54.7 billion (US$8.1 billion), an increase of 13% from RMB48.3 billion in the same quarter of 2025.
Total costs of revenues were RMB48.0 billion (US$7.1 billion), compared with RMB45.9 billion in the same quarter of 2025.

Total operating expenses were RMB36.6 billion (US$5.4 billion), an increase of 13% from RMB32.3 billion in the same quarter of 2025. The increase was primarily due to the increase in sales and marketing expenses.

Sales and marketing expenses were RMB29.7 billion (US$4.4 billion), compared with RMB27.2 billion in the same quarter of 2025.General and administrative expenses were RMB2.3 billion (US$345 million), compared with RMB1.5 billion in the same quarter of 2025.Research and development expenses were RMB4.6 billion (US$673 million), compared with RMB3.6 billion in the same quarter of 2025.
Operating profit in the quarter was RMB27.8 billion (US$4.1 billion), an increase of 8% from RMB25.8 billion in the same quarter of 2025. Non-GAAP operating profit in the quarter was RMB29.1 billion (US$4.3 billion), an increase of 5% from RMB27.7 billion in the same quarter of 2025.

Net income attributable to ordinary shareholders in the quarter was RMB27.2 billion (US$4.0 billion), a decrease of 12% from RMB30.8 billion in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB28.5 billion (US$4.2 billion), a decrease of 13% from RMB32.7 billion in the same quarter of 2025.

Basic earnings per ADS was RMB19.32 (US$2.85) and diluted earnings per ADS was RMB18.45 (US$2.72), compared with basic earnings per ADS of RMB22.01 and diluted earnings per ADS of RMB20.75 in the same quarter of 2025. Non-GAAP diluted earnings per ADS was RMB19.33 (US$2.85), compared with RMB22.07 in the same quarter of 2025.

Net cash generated from operating activities was RMB25.7 billion (US$3.8 billion), compared with RMB21.6 billion in the same quarter of 2025.

Cash, cash equivalents and short-term investments were RMB456.4 billion (US$67.3 billion) as of June 30, 2026, compared with RMB422.3 billion as of December 31, 2025.

Other non-current assets were RMB96.4 billion (US$14.2 billion) as of June 30, 2026, compared with RMB104.7 billion as of December 31, 2025, which mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities.

Conference Call

The Company’s management will hold an earnings conference call at 7:30 AM ET on August 24, 2026 (12:30 PM IST and 7:30 PM HKT on the same day).

The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share, and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude the impact of share-based compensation expenses.

The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects.

The Company’s non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company’s industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About PDD Holdings

PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions of Renminbi (“RMB”) and U.S. dollars (“US$”))   As of
  December 31, 2025
 June 30, 2026
  RMB  RMB
(Unaudited)  US$
(Unaudited) ASSETS         Current assets         Cash and cash equivalents 108,901  128,918  19,000 Restricted cash 73,831  77,274  11,389 Receivables from online payment platforms 5,109  6,079  896 Short-term investments 313,408  327,496  48,267 Amounts due from related parties 10,205  8,432  1,243 Prepayments and other current assets 7,527  8,581  1,265 Total current assets 518,981  556,780  82,060 Non-current assets

         Property, equipment and software, net 1,306  4,752  700 Intangible assets 15  14  2 Right-of-use assets 4,863  4,316  636 Deferred tax assets 172  1,162  171 Other non-current assets 104,708  96,383  14,205 Total non-current assets 111,064  106,627  15,714 Total Assets 630,045  663,407  97,774  PDD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of December 31, 2025
 June 30, 2026 RMB  RMB
(Unaudited) US$
(Unaudited)LIABILITIES AND SHAREHOLDERS’ EQUITY      Current liabilities      Amounts due to related parties1,087  1,266  187 Customer advances and deferred revenues3,379  3,641  537 Payable to merchants107,407  109,924  16,201 Accrued expenses and other liabilities81,658  76,883  11,330 Merchant deposits17,708  18,545  2,733 Lease liabilities2,499  2,455  362 Total current liabilities213,738  212,714  31,350        Non-current liabilities      Lease liabilities2,880  2,389  352 Other non-current liabilities42  517  76 Total non-current liabilities2,922  2,906  428 Total Liabilities216,660  215,620  31,778        Shareholders’ equity      Ordinary shares-*  -*  -* Additional paid-in capital125,768  128,599  18,953 Statutory reserves1,338  1,338  197 Accumulated other comprehensive income/(loss)2,116  (6,042)  (890) Retained earnings284,163  323,892  47,736 Total Shareholders’ Equity413,385  447,787  65,996        Total Liabilities and Shareholders’ Equity630,045
  663,407  97,774           * Absolute value is less than RMB1 million or US$1 million.

PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in millions of RMB and US$)

 For the three months ended June 30, For the six months ended June 30, 2025
 2026
 2025
 2026
RMB RMB US$ RMB RMB US$(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues 103,985  112,358  16,560  199,657  218,587  32,216 Costs of revenues (45,859) (48,017) (7,077) (86,805) (94,910) (13,988)             Sales and marketing expenses (27,210) (29,668) (4,373) (60,613) (63,441) (9,350)General and administrative expenses (1,532) (2,342) (345) (3,191) (3,921) (578)Research and development expenses (3,591) (4,567) (673) (7,169) (8,985) (1,324)Total operating expenses (32,333) (36,577) (5,391) (70,973) (76,347) (11,252)             Operating profit 25,793  27,764  4,092  41,879  47,330  6,976              Interest and investment income, net 10,423  13,505  1,990  10,646  12,873  1,897 Foreign exchange loss (799) (558) (82) (1,041) (703) (104)Other income/(loss), net 119  (7,399) (1,090) 3,380  (9,430) (1,390)             Profit before income tax and share of results of equity investees 35,536  33,312  4,910  54,864  50,070  7,379 Share of results of equity investees 37  (38) (6) (68) (134) (20)Income tax expenses (4,819) (6,092) (898) (9,300) (10,207) (1,504)Net income 30,754  27,182  4,006  45,496  39,729  5,855  PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in millions of RMB and US$, except for per share data) For the three months ended June 30,
 For the six months ended June 30,
 2025
 2026
 2025
 2026
RMB
 RMB
 US$
 RMB
 RMB
 US$
(Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
Net income 30,754  27,182  4,006  45,496  39,729  5,855 Net income attributable to ordinary shareholders 30,754  27,182  4,006  45,496  39,729  5,855                    Earnings per ordinary share:                  -Basic 5.50  4.83  0.71  8.16  7.07  1.04 -Diluted 5.19  4.61  0.68  7.67  6.73  0.99                    Earnings per ADS (4 ordinary shares equals 1 ADS):                  -Basic 22.01  19.32  2.85  32.63  28.27  4.17 -Diluted 20.75  18.45  2.72  30.69  26.90  3.96                    Weighted-average number of ordinary shares outstanding (in millions):                  -Basic 5,588  5,627  5,627  5,578  5,622  5,622 -Diluted 5,928  5,894  5,894  5,930  5,907  5,907  PDD HOLDINGS INC.
NOTES TO FINANCIAL INFORMATION
(Amounts in millions of RMB and US$)

 For the three months ended June 30,
 For the six months ended June 30,
 2025
 2026
 2025
 2026
RMB
 RMB
 US$
 RMB
 RMB
 US$
(Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
Revenues                  - Online marketing services and others 55,703  57,637  8,494  104,425  107,573  15,855 - Transaction services 48,282  54,721  8,066  95,232  111,014  16,361 Total 103,985  112,358  16,560  199,657  218,587  32,216  PDD HOLDINGS INC.
NOTES TO FINANCIAL INFORMATION
(Amounts in millions of RMB and US$)

 For the three months ended June 30,
 For the six months ended June 30,
 2025
 2026
 2025
 2026
RMB
 RMB
 US$
 RMB
 RMB
 US$
(Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
Share-based compensation expenses included in:                  Costs of revenues 65  46  7  122  74  11 Sales and marketing expenses 485  319  47  1,122  680  100 General and administrative expenses 865  645  95  1,789  1,352  199 Research and development expenses 540  297  44  1,096  725  107 Total 1,955  1,307  193  4,129  2,831  417  PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions of RMB and US$)

  For the three months ended June 30, For the six months ended June 30,  2025
 2026
 2025
 2026
  RMB RMB RMB RMB RMB RMB  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)             Net cash generated from operating activities 21,642  25,670  3,783  37,159  42,115  6,207 Net cash used in investing activities (27,022) (19,974) (2,944) (33,406) (17,892) (2,638)Net cash generated from financing activities -* -* -* -* -* -*Effect of exchange rate changes on cash, cash
equivalents and restricted cash 22  1,242  184  (47) (763) (111)             (Decrease)/increase in cash, cash equivalents and restricted cash (5,358) 6,938  1,023  3,706  23,460  3,458 Cash, cash equivalents and restricted cash at beginning of period 135,258  199,254  29,366  126,194  182,732  26,931 Cash, cash equivalents and restricted cash at end of period 129,900  206,192  30,389  129,900  206,192  30,389                     * Absolute value is less than RMB1 million or US$1 million.

PDD HOLDINGS INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES
(Amounts in millions of RMB and US$, except for per share data)

  For the three months ended June 30,
 For the six months ended June 30,
  2025
 2026
 2025
 2026
  RMB
 RMB
 US$
 RMB
 RMB
 US$
  (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
 (Unaudited)
Operating profit 25,793  27,764  4,092  41,879  47,330  6,976 Add: Share-based compensation expenses 1,955  1,307  193  4,129  2,831  417 Non-GAAP operating profit 27,748  29,071  4,285  46,008  50,161  7,393                    Net income attributable to ordinary shareholders 30,754  27,182  4,006  45,496  39,729  5,855 Add: Share-based compensation expenses 1,955  1,307  193  4,129  2,831  417 Non-GAAP net income attributable to ordinary shareholders 32,709  28,489  4,199  49,625  42,560  6,272                    Non-GAAP diluted weighted-average number of ordinary shares outstanding (in millions) 5,928  5,894  5,894  5,930  5,907  5,907                    Diluted earnings per ordinary share 5.19  4.61  0.68  7.67  6.73  0.99 Add: Non-GAAP adjustments to earnings per ordinary share 0.33  0.22  0.03  0.70  0.47  0.07 Non-GAAP diluted earnings per ordinary share 5.52  4.83  0.71  8.37  7.20  1.06 Non-GAAP diluted earnings per ADS 22.07  19.33  2.85  33.47  28.82  4.24 

PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed the most recent trading day at $84.83, moving -1.42% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.

Prior to today's trading, shares of the company had gained 10.16% outpaced the Retail-Wholesale sector's gain of 1.33% and the S&P 500's loss of 0.63%.

The upcoming earnings release of PDD Holdings Inc. Sponsored ADR will be of great interest to investors. The company is predicted to post an EPS of $2.85, indicating a 7.47% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $17.13 billion, up 18.04% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.37 per share and revenue of $70.74 billion, which would represent changes of +0.1% and +16.67%, respectively, from the prior year.

Any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. PDD Holdings Inc. Sponsored ADR is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 8.3 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.17.

Meanwhile, PDD's PEG ratio is currently 0.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PDD in the coming trading sessions, be sure to utilize Zacks.com.